We all know and love that friend who is the life of the party. They are glib, relaxed, and fun. Everyone thinks so. They light up every room they enter and they always seem to have people eating out of the palm of their hand.
These folks are ever so popular. They pop up at just about any party, unless they have something even more fun and interesting to do.
We also know that another kind of friend. They are generally quieter and more reserved than the life of the party type. People are not always quick to note their coming and going. They know interesting stuff and often lead interesting lives. But, for whatever reason, they do not talk about themselves much and, in fact, often seem more interested in us.
No one eats out of their hands and, come to think of it, they do not really go out of their way for attention. They are steady, reliable, and consistent. Sometimes, especially when we are in a tight spot in our lives, we refer to them as “true friends” because they are the ones who are there for us when we need them most. You know the kinds of friends I am referring to and are probably thinking of them as you read this.
Most of us have both kinds of friends. If we only had the former, life would be fun but who would we have meaningful conversations with? Also, to whom would we turn if we found ourselves in a pickle.
If we only have true friends, we would certainly be fortunate, though we might get a bit bored at times. After all, they tend to be serious people. Serious does not mean fun, though it does not necessarily preclude it either.
Another way of thinking about this is to imagine the following situation:
Due to an unusual combination of circumstances, we must leave unexpectedly on some family emergency. Worse, it is already Saturday night and we must head out early on Sunday morning.
What do we do? We would probably call a bunch of our friends to ask for their help with our kids, the house and the dog.
The truth is, you already know which friends will be there for you and which ones “would love to” but for some reason or other cannot.
Our investments can be like that too. There are those that can, at times, be wild and wonderful, fun and fantastic, the life of the investment party.
There are other assets that are steady, consistent, and yes, perhaps even a bit boring. But like true friends, they are much more likely to be there for us when things go off the rails, as things sometimes do, particularly at the most importune moment.
Depending on the future trajectory of your life, which in large measure is unknowable, it is important to determine the composition of your assets. What type of financial mosaic do you currently have? Is a bit too much, life of the party and not enough, there when you need it most?
Certainly, you can assess your investment holdings on your own. Often, however, it makes sense to consider working with a financial planner whom you trust, to help review your portfolio. Anyone can suffer from a cognitive blind spot when it comes to investing. Bringing in someone with subject matter mastery and a keen clinical eye might be helpful to you.
Who knows, perhaps he or she may be able to introduce you to assets that could become true friends. Remember, knowledge is power. Keep in mind, however, that knowledge without meaningful action is multiplication by zero. It results in nothing. Get help. Gain knowledge. Take action. You and your family will be happy you did.
Scott R. McGimpsey August 28th , 2020
This material was prepared by Scott McGimpsey and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Neither Cetera Advisor Networks LLC nor Scott McGimpsey is engaged in rendering legal, accounting, or other professionally services. If such assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any federal, state, or municipal tax penalty. Moreover, a diversified portfolio does not assure a profit or assure protection against loss in a declining market. UNIFIED PLANNING GROUP is an independent firm. Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Advisory services offered through Summit Financial Group, Inc., a Registered Investment Advisor. Summit and Cetera are affiliated and under separate ownership from any other named entity.